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KordaMentha, the firm responsible for the administration of Arena Capital/BlackfortFX, have issued another update to clients of the troubled New Zealand Forex broker.

The update states that the broker is clearly insolvent and that it needs to be put into liquidation, so that the administrators would be able to free some assets and proceed with return of client funds.

KordaMentha has now filed an application with the court to be appointed as a liquidator (rather than as a receiver) of BlackfortFX. The court will consider the application on July 24, 2015.

KordaMentha has finalised a reconstruction of individual client accounts based on transactions through Arena’s bank account. The current analysis shows the broker transacted with approximately 1,100 individual clients. This number is up from previously estimated 750 clients.

Starting today – July 13, 2015, KordaMentha we will start sending clients a statement about their position is with the broker, which the clients need to confirm or disagree with. Given that BlackfortFX was not actually active in Forex, the administrators will not assign any profit to any client.

Because the process of balances confirmation and assets recovery will take substantial time, KordaMentha say the distribution of surplus assets will be possible sometime later this year at the earliest.

The broker was placed in receivership in late May 2015, amid concerns that it was operating in violation of New Zealand investment laws and that client funds were at risk.

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